Senior Options Trading Strategist at Optionity, MBA. Our trading approach starts with the fundamentals, then through short-term technical analysis, to finally leverage options trading (with the combination of long and short positions) to achieve favorable risk and reward ratio trading plays. Our... More

The market sentiment was driven by greed with Fear & Greed Index at 63, which had increased from the previous day closing of 61. As reported by CBOE, the total put/call ratio was 0.99 for the day. The index put/call ratio was 1.22, and the equity put/call ratio was 0.63. The CBOE volatility index (VIX) put/call ratio was 0.74. The stocks with unusual call activities had been identified through our daily options scanning process, with the scanning criteria where the daily call option volume ratio was above 2.00 (2x of the average call option volume) with a call option volume above 20,000. Unusual option activities can be an indicator or precursor of a major movement for the underlying stock.

SPY opened flat and closed strongly higher at $151.91 (+1.26%). The volume was 30.65M. On weekly basis, the MACD (12, 26, 9) is showing a bullish trend and the MACD Histogram increased and closed at 0.652 (previous closing of 0.532). SPY is currently trading above its 200-day MA of $118.76 and its 50-day MA of $139.89. RSI (14) increased to 68.90 from 63.15 with an increasing buying momentum. The next resistance is $154.09 (R1), followed by $161.81 (R2).

GLW credit short put spread $11/$12 Mar. 15, 2013 ($0.23 credit, established on February 7, 2013) => Closed short put $12 at $0.07 on February 20, 2013. $0.16 profit (20.78% Return on Margin, 13 days, including non-trading days). $11 put position was sold for $0.04 on February 26, 2013, adding $0.04 to the total profit.

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